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News Articles
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Passamaquoddy Bay & LNG

2010 August

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2010 Aug	30	Fisherman paints dismal post-LNG picture (Aug 24) Our view: Crushing pollution [Editorial] Gear it down [Editorial] (Aug 29) Washington State denies Water Quality Certification for Bradwood Landing Pipeline project
	28	US LNG import projects stall as shale gas, overseas demand swell (Aug 30) Goldboro LNG loss: Timing everything [Editorial] (Aug 27) Future pipeline to Quebec? Editorial: Power play hurts public Savannah City Council wants details on LNG trucking plan (Aug 27) FERC Chairman responds to Louisiana Congressional delegation on Sabine Pass LNG liquefaction (Aug 27) Sempra Pipelines & Storage announces successful start-up of Mississippi Hub gas storage facility [News Release] (Aug 27)
	26	Gas: Outlook for Saint John facility remains strong, says Repsol executive in face of N.S. terminal's cancellation Gelber & Associates today provides data on declining natural gas prices NYMEX settles below $4 for first time since May Natural gas prices slump to 2010 low Frank, McGovern aim to block LNG Mayor rebukes LNG over trucking plan Plan to put liquefied natural gas on roads Savannah mayor and council upset with LNG LNG proposal debated before council U.S. energy use declines, renewables increase
	25	Goldboro LNG plant a no go Weaver's Cove Energy invites FERC chairman to tour project site Peru: Camisea gas to arrive in the US on Sept. 10 Two Gulf Coast LNG projects crumble under market pressure Natural gas industry to 2016 [News release] Shale plays and how they weaken nat gas prices DOE National Laboratory breakthrough could enhance use of domestic natural gas, methane hydrate resources
	24	Briefing on the Global Shale Gas Initiative Conference Plan for N.S. LNG terminal cancelled Liquefied natural gas terminal plan in N.S. shelved due to drop in demand U.S. Sen. Scott Brown addresses economy, job market at chamber event Southern LNG applies to load LNG on trucks at Elba Island facility Mitsubishi Corporation to invest in Canada's Penn West Energy Trust's shale gas development project Plentiful unconventional gas supplies adversely affects global LNG markets
	23	Rough seas for liquefied natural gas terminal [Editorial] Congressmen Barney Frank and James McGovern maneuver to kill Hess LNG terminal in Fall River (Aug 20) Jamestown is Rhode Island's center for LNG opposition (Aug 22) Coast Guard responds to Cameron LNG proposed export operations Noranda Bauxite optimistic (Aug 22) No substance to Valdez option under AGIA [Opinion] (Aug 20) LNG application decision delayed (Aug 20) Hearings officer OKs gas pipeline Hearings officer approves LNG pipeline for Clatsop County
	20	USCG publishes final rule regulating activities near LNG deepwater ports located offshore Mass Proposed Fall River LNG could be halted Lawmakers take a tour of city's waterfront Bill’s add-on would bar Fall River LNG project Frank, McGovern look to kill LNG facility Barney Frank and Jim McGovern maneuver to kill Hess LNG terminal (Aug 19) Bill: No federal funds for bay LNG terminal (Aug 19) The largest ever natural gas discovery in U.S. history… and the company set to dominate (Aug 19) Sabine Pass Liquefaction submits application to export LNG (Aug 19) FERC denies request for rehearing on Freeport LNG trucking proposal (Aug 19) European shale gas development unlikely to match the dynamic expansion seen in the US (Aug 18)
	17	BEP grants another extension of time for Calais LNG project (Aug 13) Advocates laud halt of gas tank proposal Wu fights for Oregon's rights in LNG siting (Aug 16) UNG’s insurmountable obstacle US may see more LNG terminals to export gas
	13	Calais LNG — 'Investment Pariah' Calais LNG looking for new investors Potential Calais natural gas developer given extension to find new financial backers (Aug 12) Maine board gives Calais LNG a month to win financing (Aug 12) Calais LNG granted extension Calais LNG needs time to line up investors Calais LNG asks for further postponement (Aug 12) Border Issues: Save Passamaquoddy Bay maintains Calais LNG fails state permitting threshold (Aug 12) LNG, FDI, corruption, energy strategy Edging toward Kitimat LNG [export terminal] (Week of Aug 15) Parnell backs exports, with conditions (Week of Aug 15) Legislators hear from new in-state natural gas line team (Week of Aug 15)
	12	'No-pulse, no-pockets' CLNG gets additional BEP delay Calais LNG gets lifeline from state Calais LNG granted third hearing postponement Calais LNG given extension to find financing Maine grants Calais LNG proposal extension after investor bails Corporate intimidation? (Aug 11)
	11	No Calais LNG Financial Capacity Calais LNG still dumped by Goldman Sachs LNG company asks for extension for its Calais proposal (Aug 10) Calais LNG again asks to postpone permit hearing (Aug 10) Calais LNG seeks second hearing delay NRCM announces its fifth annual People's Choice Award nominees Barclays expanding natural gas trading service after agreement with Eni (Aug 10) FERC requests information in advance of annual review of Kenai LNG facility Short-term energy outlook (Aug 10) Natural gas and international relations (Part I) Cargo vessel strikes a southern right whale in Argentina (Aug)
	9	R.I. Senate submits Task Force's findings on Weaver's Cove LNG to FERC (Aug 6) Ahearn: Good news on the energy front (Aug 8) Oregon Appeals Board deals major blow to PG&E’s LNG project [News release] (Jul 16) Why our environmental laws are failing (Aug 6)
	5	Swansea selectmen unswayed by LNG pitch (Aug 3) Jamestown looks offisland for ACO services Emergency shutdown reported at Elba Island LNG terminal FERC initiates NEPA Pre-Filing process for Sabine Pass LNG liquefaction project Oregon Pipeline reports results of open season As pipeline moves forward, concerns remain
	3	Advocates laud suspension of LNG proposal Robertson underscores importance of Independent OUR (Aug 1) The gift of shale gas [Opinion column] (Aug 2)
	1	Calais LNG's 'Credibility Doom' Calais LNG project will continue, vows project manager - Jul. 27, 2010

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30 Aug 2010

Fisherman paints dismal post-LNG picture (Aug 24) — Saint Croix Courier, St. Stephen, NB

Webmaster’s Note: The following article is available only through paid subscription.

St. Andrews — Any LNG (liquefied natural gas) development in Passamaquoddy Bay would have a devastating effect on the fisheries in the area, says Deer Island fisherman Dale Mitchell.

All the Canadian route is fished for lobster, and in Head Harbour Passage, lobster boats set 5,000 traps per square mile. He noted that Calais LNG has already said vessels would not pass through U.S. waters and [would] stay in Canadian waters....

He spoke about how light pollution — even lightning and bright moonlight — affects the movement of the herring into weirs. A lighted tanker together with an LNG plant as well as ancillary industries would all affect the herring, said Mitchell.

Our view: Crushing pollution [Editorial] — The Herald News, Fall River, MA

Thumbs up to U.S. Reps. Barney Frank and James McGovern, who say they’ve come up with a plan to kill the controversial liquified natural gas proposal once and for all.

Fall River’s waterfront is not the appropriate location for a natural gas facility of this magnitude, a project that would include an LNG offloading station in the middle of Mount Hope Bay and a four-mile-long underwater pipeline leading upriver to Weaver’s Cove, where a giant storage tank would hold the volatile fuel. Any effort to finally eliminate such a threat to resident safety and the economic development of the waterfront is welcome.

Webmaster’s Comments: Even the world LNG industry's own terminal siting best safe practices indicate the Weaver's Cove Energy LNG project at Fall River is inappropriate.

Gear it down [Editorial] (Aug 29) — Savannah Morning News, Savannah, GA

FEDERAL REGULATORS have given Savannahians just a few weeks to respond to a plan to move liquefied natural gas through the city on busy surface roads.

We have three words for them: Gear it down.

This is no time for the Federal Energy Regulatory Commission to act in a big rush on a proposal that caught many people by surprise last week, including Savannah City Council.

Washington State denies Water Quality Certification for Bradwood Landing Pipeline project — LNG Law Blog

Earlier this month the Department of Ecology for the State of Washington denied an application for water quality certification filed by NorthernStar Energy, LLC for the Bradwood Landing Pipeline project. In its denial letter, available in the FERC eLibrary under Docket No. CP06-365, the Department of Ecology noted that NorthernStar failed to submit enough information for the Department to complete its review of the project. NorthernStar can resubmit its certification request at a later date.

Webmaster’s Comments: This appears to be an additional nail in the coffin of an already-dead Bradwood Landing LNG project. Earlier this year, NorthernStar filed for liquidation bankruptcy.

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28 August 2010

US LNG import projects stall as shale gas, overseas demand swell (Aug 30) — Natural Gas Week, Energy Intelligence [Paid subscription required]

With the US gas market swamped by shale gas discoveries, prompting LNG cargoes to be switched to higher-value Asian and European markets, it's once again a lean time to be developing new US LNG import terminal projects. The grim outlook for imports, along with the recent Gulf of Mexico oil spill, have led several ventures to suffer delays and financial troubles. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: Bad news for Downeast LNG and Calais LNG keeps on pouring in.

Goldboro LNG loss: Timing everything [Editorial] (Aug 27) — The Chronicle Herald, Halifax, NS

Besides the recession, which has taken its toll on mega-projects everywhere, there has been a sea change in the natural gas business since the Guysborough County plant was first conceived. Up until a few years ago, it was believed North America would soon run out of natural gas and plans were made to import it from overseas to terminals like Goldboro.

But technological advances have now made it far more feasible for natural gas to be tapped from previously inaccessible deposits in our own backyard. As it turns out, the shale gas beneath our feet on this continent can be drilled more cheaply than natural gas in offshore wells. Moreover, there are ample domestic reserves, which diminishes the rationale for LNG imports. [Red, yellow & bold emphasis added.]

Future pipeline to Quebec? — New Brunswick Business Journal, Saint John, NB

Increased competition for natural gas supply from Western Canada has created a new opportunity for New Brunswick to ship Maritime gas into Quebec and Ontario via a hypothetical future pipeline corridor along the Trans-Canada Highway, says a report obtained by the Telegraph-Journal.

The Stantec report says market conditions, trouble bringing liquefied natural gas to North America, as well as economic uncertainty within Quebec and on a global scale are preventing two proposed LNG terminals, each with a capacity of 500 million cubic feet of gas per day, in that province from moving forward - Rabaska LNG in Ville Guay-Beaumont and Gros Cacouna LNG near Rivière-du-Loup.

Earlier this week, Repsol Energy North America president Phillip Ribbeck told the Telegraph-Journal it's not economic right now, but Canaport LNG would consider serving markets in Central Canada down the road, if the demand was there; Repsol owns 75 per cent of the Saint John terminal and operates the facility, which meets 20 per cent of the New England gas market's needs.

Stantec admits that the proposed Quebec facilities represent a threat to New Brunswick's stake in Central Canada's natural gas markets and points out that Quebec's Utica shale gas play may be developed in the future.

Webmaster’s Comments: This news article implies that Canaport LNG has considerable unused capacity, indicating the lack of need for more LNG infrastructure in the Northeast US. It also indicates there is an untapped supply of domestic shale gas in Quebec that could further reduce market need for additional LNG import infrastructure. (The two proposed Quebec LNG terminals, Rabaska LNG and Gros Cacouna LNG, would violate LNG industry terminal siting best practices.)

Editorial: Power play hurts public — The Providence Journal, Providence, RI

Power grabs by politicians are no substitute for a thoughtful consideration of the Weaver’s Cove project.

Webmaster’s Comments: Due diligence and industry compliance by Weaver's Cove Energy would have been even better. The project site is inherently inappropriate.

Savannah City Council wants details on LNG trucking plan (Aug 27) — Savannah Morning News, Savannah, GA

"I don't think any company has a right to truck hazardous material through this city without having a discussion with this council and staff about the dangers and liability of that proposal," Johnson said. "... This is a very crucial issue that involves the safety of our citizens."

FERC Chairman responds to Louisiana Congressional delegation on Sabine Pass LNG liquefaction (Aug 27) — LNG Law Blog

FERC Chairman Jon Wellinghoff has responded to a letter to the Commission by members of the Louisiana congressional delegation regarding the Sabine Pass LNG liquefaction proposal.

Sempra Pipelines & Storage announces successful start-up of Mississippi Hub gas storage facility [News Release] (Aug 27) — Sys-Con Media

Located at the Bond Salt Dome in Simpson County, Miss., Mississippi Hub is strategically positioned to access the shale basins of east Texas and Louisiana, traditional gas supplies in the Gulf of Mexico and along the U.S. Gulf Coast, as well as liquefied natural gas imports. With its multiple interstate pipeline interconnects, the facility is ideally located to serve growing demand centers in the southeast and northeast regions of the U.S.

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26 August 2010

Gas: Outlook for Saint John facility remains strong, says Repsol executive in face of N.S. terminal's cancellation — New Brunswick Business Journal, Saint John, NB

Plans to build a massive liquefied natural gas terminal on the east coast of Nova Scotia may have been scrapped due to a lack of demand, but the prospects for Saint John's own LNG terminal still look good, says a top executive with Repsol.

Ribbeck admitted that recent developments of shale gas in both the United States and New Brunswick, may decrease demand for imported natural gas. But, he said, shale gas development in the province might not pan out, or power generators in the United States currently running coal or nuclear plants might look to switch to a different fuel.

"There's enough capacity on the East Coast of North America to handle our expected imports of LNG for the next couple of decades," he added, noting that forecasts for large increases in LNG shipments to North America turned out to be wrong.

The market for LNG imports in the region slowed down for two reasons, said Gaul. First, countries outside of North America were willing to pay more for natural gas, and second, the development of shale gas resources occurred quite quickly and successfully. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: Canaport LNG has a 25-year contract for its natural gas output, meaning there would be no competition from Downeast LNG or Calais LNG for at least 25 years.That moots Passamaquoddy Bay LNG supporters' frequent argument that Irving and its parent company Fort Reliance (a 25% owner in Canaport LNG) opposes the Maine projects. There is an ocean of domestic natural gas at North America's disposal. Irving has publicly stated they do not oppose LNG projects in Maine. They have no reason to do so.

Natural gas prices slump to 2010 low — (AP) KRQE-TV, Albuquerque, NM

NEW YORK (AP) - Natural gas prices on Thursday slumped to a record low for the year after the government reported a rise in U.S. supplies.

Natural gas prices typically rise again as winter approaches and home owners crank up the heat. But overall, PFGBest analyst Phil Flynn said natural gas should become cheaper as drillers tap into larger sections of underground shale. America's vast natural-gas shale deposits are just beginning to be exploited, and the industry is expected to produce much more in coming years. [Red, yellow & bold emphasis added.]

Frank, McGovern aim to block LNG — SouthCoastToday.com, New Bedford, MA

McGovern and Frank, along with Senators John Kerry and Scott Brown, Gov. Deval Patrick, Rhode Island Gov. Donald Carcieri, Fall River Mayor Will Flanagan and virtually all state and local government officials representing the Fall River area, have strongly opposed the LNG proposal and have fought it since it was first introduced eight years ago.

Frank and McGovern have written for the Energy and Water Appropriations bill in the House. A provision added to the Energy and Water Appropriations bill in the House, written by the congressmen, would ban any federal funds from being used to further the LNG project in any way, including a prohibition on using funds to advance the permitting process. If the bill is signed into law, the long fight to stop the LNG terminal will effectively be over.

More than eight years ago, Weavers Cove Energy proposed locating a facility in Fall River. The project has had strong bipartisan opposition from leaders including former Massachusetts Gov. Mitt Romney, Patrick, Carcieri, as well as the Attorneys General and the entire congressional delegations of both states. [Red emphasis added.]

Webmaster’s Comments: The Weaver's Cove Energy LNG project is in an inappropriate location and is not needed for energy security in the Northeast. This project deserves its opposition.

Mayor rebukes LNG over trucking plan — Savannah Morning News, Savannah, GA

Savannah's City Council is asking its attorney to determine whether the city has legal grounds to fight an LNG proposal that calls for transporting up to 58 tanker trucks of fuel [per day] along DeRenne Avenue.

"I don't think any company has a right to truck hazardous material through this city without having a discussion with this council and staff about the dangers and liability of that proposal," Johnson said. [Red emphasis added.]

Plan to put liquefied natural gas on roads — GPB News, Georgia Public Broadcasting, GA

The company plans to send up to 58 tankers a day, loaded with LNG, from Elba Island.

"The corridor down which these trucks will move encompasses schools, any number of residential neighborhoods and major hospitals," Kinsler says. [Red emphasis added.]

Webmaster’s Comments: Although tanker trucks carry far smaller volumes of LNG than ships, meaning the affected area would be small in comparison, the proposed number of LNG trucks per day — over two per hour — does increase the odds of an incident. Additionally, the volume of gas contained in an LNG truck (approx. 600 times the LNG volume) is considerably larger than the volume of other trucked hydrocarbon fuels (propane expands to approx. 270 times the liquid volume), making the potential area of impact from an LNG incident greater.

Savannah mayor and council upset with LNG — WSAV-TV, Savannah, GA

Turns out the City Council and Mayor of Savannah aren't very happy with LNG and their plans to truck liquefied gas down DeRenne Avenue; especially since they weren’t even invited to a community meeting on Monday.

The council was also in consensus over sending a letter to LNG stating their displeasure with how things are being handled. The City is even more frustrated with the proposed trucking route since it involves the corridor they’re about to pour millions of dollars into improving.

LNG proposal debated before council — The Cordova Times, Cordova, AK

Public discussion prior to executive session at a recent special meeting of the Cordova City Council brought new information and pointed criticism from both sides of the debate over AIG Co. and its proposal to purchase tidelands adjacent to the new boat haul-out for development of a liquefied natural gas facility.

Mary Ann Bishop called on the council to cease negotiations, saying 'Due diligence has not occurred.'

Bishop said that the city should have reliable and complete background information prior to proceeding, including market analysis, a business plan and proof of financial fitness. [Red & bold emphasis added.]

U.S. energy use declines, renewables increase — Renewable Energy World

The United States used significantly less coal and petroleum in 2009 than in 2008, and significantly more wind power. There also was a decline in natural gas use and increases in solar, hydro and geothermal power according to the most recent energy flow charts released by the Lawrence Livermore National Laboratory.

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25 August 2010

Goldboro LNG plant a no go — The Chronicle Herald, Halifax, NS

It is a straightforward supply-and-demand situation, Owen said.

He said there are sufficient natural gas supplies available from other sources to meet North America’s present needs, he said [sic].

"Shale gas is one of the new players on the block, so to speak," he said, noting that the market for liquefied natural gas and natural gas has changed dramatically over the last 12 to 18 months.

Weaver's Cove Energy invites FERC chairman to tour project site — LNG Law Blog

Weaver's Cove Energy CEO Gordon Shearer invited FERC Chairman Jon Wellinghoff to tour the proposed site of the LNG import facility. The invitation follows recent efforts by a number of congressional representatives to prevent further administrative reviews of the LNG proposal.

Peru: Camisea gas to arrive in the US on Sept. 10 — Living in Peru, Lima, Peru

The first shipment of Camisea gas, estimated in 163,285 m3 of liquified gas, will arrive in Freeport, Freeport, Tx., on Sept. 10, reports Semana Economica.

Two Gulf Coast LNG projects crumble under market pressure — The Energy Daily Network [Paid subscription required]

With domestic natural gas supplies soaring--and gas prices tumbling--developers of liquefied natural gas import terminals are increasingly pulling the plug on their projects, with FERC documents this week showing two such facilities on the Gulf Coast biting... [Red, yellow & bold emphasis added.]

Webmaster’s Comments: Calais LNG and Downeast LNG want the public to not notice that their projects have no purpose; however, the news about the decline of importing LNG is unavoidable.

Natural gas industry to 2016 [News release] — PressZoom.com

Unconventional natural gas will account for majority of natural gas supply and will be the key driver of natural gas production growth in North America

The North American natural gas industry is expected to witness a steady growth in production from 72.4 Bcf/d in 2008 to 82.1 Bcf/d in 2020, at an AAGR of 1.2%. The unconventional natural gas is expected to account for 52% of the total production in 2020. In US, the unconventional natural gas already accounts for approximately 50% of the production. By 2020, the share is expected to increase to 58%. In Canada, the unconventional natural gas production is expected to account for 30% of the production in 2002, up from approximately 5% share in 2008. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: North America is drowning in natural gas, mooting the need for additional LNG import development.

Shale plays and how they weaken nat gas prices — Commodity Online

Shale gas output from Haynesville, Marcellus, Eagle Ford or Granite Wash have skyrocketed since the fourth quarter of last year. These plays are proving to be extremely dynamic, benefiting from continued improvements in gas rig efficiency and well productivity. In the Haynesville alone, production is up about 2.4 bcf/d this year relative to last. According to the latest data, the number of producing wells is up sharply over the past months and the inventory of permitted wells waiting on completion, fracturing or other operations is large. Permitted wells that are not yet drilling are also back at a record high. Shale gas is still leading the way.

Webmaster’s Comments: News demonstrating lack of need for Calais LNG and Downeast LNG keeps pouring in.

DOE National Laboratory breakthrough could enhance use of domestic natural gas, methane hydrate resources — U.S. Department of Energy, Washington, DC

Gas hydrates retain large amounts of methane – one cubic meter of solid hydrate can produce 164 cubic meters of methane, the principal component of natural gas. Estimates indicate hydrate deposits contain more organic carbon in the form of methane than all the world’s fossil fuel reservoirs combined. NETL, the laboratory of DOE’s Office of Fossil Energy, has been in the forefront of investigating environmentally safe, economic ways to extract and transport methane locked in these hydrate deposits.

Conventionally, natural gas is cooled and compressed to reduce its volume for transport as either compressed natural gas (CNG) or liquefied natural gas (LNG). This increases the cost of natural gas for the end-user and is also not energy efficient; additionally, some of the gas is lost to vaporization of LNG during transport.

NETL researchers have found a way to rapidly and continuously form synthetic natural gas hydrates with just water and methane, using much less pressure and cooling than is required to liquefy it.

Ultimately, NETL researchers believe the new process will significantly reduce production, transportation, and storage costs associated with current LNG and CNG processes while enhancing and making more efficient the use of natural gas from stranded resources. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: Bad news for LNG keeps pouring in.

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24 August 2010

Briefing on the Global Shale Gas Initiative Conference — U.S. Department of State, Washington, DC

The impact in the U.S. is we, eight years ago, expected that we would be importing vast amounts of liquefied natural gas, and now, because we have this large-scale domestic production, we won’t need to.

In this country, it’s entirely possible if things continue on trend that we would have the ability to export gas extracted from shale, liquefy it, and export it overseas. That’s if we didn’t use all of it domestically.

U.S. gas reserves have increased eight fold over the last 10 years. And projections we saw from the National Security Council this morning showed just that estimates from EIA for the United States, China, and Canada show that we might be looking at somewhere near 30 percent of future gas supply coming from unconventional sources – that shale-type gas, coal bed methane as well.

So for the U.S., this has been a game-changer in the sense that we thought we were on the decline and now we’re very significantly on the rise. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: The US State Department is indicating a lack of need for more LNG import facilities like Calais LNG and Downeast LNG.

Plan for N.S. LNG terminal cancelled — The Globe and Mail, Toronto, ON

Angela Tu Weissenberger, an economist based in Calgary, said the North American supply of natural gas has been boosted by new technologies allowing its extraction from shale.

She studied the East Coast LNG proposals two years ago for the Atlantic Institute for Market Studies, and predicted that unconventional gas production would reduce their chances of proceeding.

“When a lot of these LNG terminals were being proposed they really thought that natural gas was going to be on the decline and they would require additional imports to meet demand,” she said.

“It's not happening.” [Red, yellow & bold emphasis added.]

Webmaster’s Comments: Everyone realizes North America is drowning in domestic natural gas, mooting the need for additional LNG import infrastructure such as proposed by Downeast LNG and Calais LNG.

Liquefied natural gas terminal plan in N.S. shelved due to drop in demand — (The Canadian Press) Winnipeg Free Press, Winnipeg, MB

Maple LNG general manager Derek Owen says a plan to build the three-tank terminal in Goldboro will not go ahead due to a lack of demand in Canada and difficulties in obtaining supply.

Federal and provincial environmental permits for the project will remain in force until 2011 and 2012.

U.S. Sen. Scott Brown addresses economy, job market at chamber event — The Herald News, Fall River, MA

In a brief interview after his talk, Brown said he has not had a chance to read the House bill amendment that U.S. Reps. Frank and Jim McGovern said last week could kill the proposal for a liquefied natural gas terminal in Mount Hope Bay.

The amendment, the Congressmen said, would block the Federal Energy Regulatory Commission from spending any money to deliberate the project, and would block any funding that would be used to authorize vessels carrying liquefied natural gas to serve the terminal.

Brown has previously spoken out against the LNG project because of safety and security concerns. [Red emphasis added.]

Webmaster’s Comments: As with Downeast LNG and Calais LNG, the LNG industry indicates the Fall River Energy LNG project violates terminal siting best safe practices.

Southern LNG applies to load LNG on trucks at Elba Island facility — LNG Law Blog

On August 4, 2010, Southern LNG submitted an application to FERC to load LNG on trucks for regional distribution. The application contemplates reactivating the truck loading facilities at the Elba Island LNG terminal and beginning operations in November 2012. The filing notes that eight to ten tanker trucks will be loaded per day, which could expand to nearly 60 tanker trucks per day over the next decade. [Red emphasis added.]

Mitsubishi Corporation to invest in Canada's Penn West Energy Trust's shale gas development project — NewsyStocks.com

PWE is a promising partner with a significant position in the Cordova Embayment, which boasts a high quality shale gas resource comparable to the top tier shale gas resources in North America. PWE has been conducting initial drilling operations since 2006 and, based upon third party evaluations, Mitsubishi believes that the shale gas resources in this project are approximately 5 - 8 trillion cubic feet (MC estimate, over 100~160 million tons in LNG equivalents). The potential of this enormous resource could greatly exceed Japan's natural gas annual demand.

Effect of the Agreement will serve as a fillip for development of shale gas in these sections, where the current plans of the JV are to lift current output of approximately 30 million cubic feet per day to approximately 500 million cubic feet per day (approximately 3.5 million tons of LNG equivalents per year) based upon current and anticipated economic, regulatory and market conditions. [Red, yellow & bold emphasis added.]

Plentiful unconventional gas supplies adversely affects global LNG markets — Oil & Gas Financial Journal

The global economic crisis has led to a significant drop in global demand for natural gas, which has led to a huge slump in natural gas prices, according to a new report from GBI Research titled, “Natural Gas Industry to 2016 – Abundance of Unconventional Gas Changing the Industry Landscape.”

[W]ith the spurt in production from shale basins, the new liquefaction terminals will further deepen the global LNG supply glut.

[T]he major factor of increasing natural gas supplies from unconventional sources is expected to adversely affect the industry. [Red, yellow & bold emphasis added.]

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23 August 2010

Rough seas for liquefied natural gas terminal [Editorial] — Boston Herald, Boston, MA

The Fall River location is problematic, to be sure. But New Englanders get about 20 percent of their energy from natural gas and LNG imports ensure an adequate supply and reasonable prices. Perhaps the delegation could apply the same dogged determination to finding an alternative site as they have to killing this project.

Webmaster’s Comments: Since there is a vast overbuild of LNG infrastructure — including in the Boston area — the Fall River project (Hess Energy's Weaver's Cove LNG) is moot. Besides, the Weaver's Cove project is located inappropriately, even according to the LNG industry. If the developer believes the project is needed, it needs to find an industry-compliant site. The onus does not fall on the delegation that is appropriately opposing the project's siting.

Congressmen Barney Frank and James McGovern maneuver to kill Hess LNG terminal in Fall River (Aug 20) — Taunton Daily Gazette, Taunton, MA

The congressmen said the move would effectively block the Federal Energy Regulatory Commission from spending any money to deliberate the proposed project, including the approval of the off-shore berthing site designed for Mount Hope Bay. Frank said the bill has bi-partisan support, including the backing of Republican U.S. Senator Scott Brown, and described the action as veto proof.

“So there’s no ambiguity moving forward, this appropriation bill means there will be no federal money to advance an LNG facility here,” McGovern said. “If the company wants to say otherwise, they can continue to lie to their shareholders.”

Webmaster’s Comments: As with Downeast LNG and Calais LNG, the Weaver's Cove LNG project is not needed for US natural gas security of supply. There is a 100-year natural gas domestic supply, and existing LNG import facilities are operating on average at only around 10% of capacity. There is no need for additional LNG import infrastructure.

Jamestown is Rhode Island's center for LNG opposition (Aug 22) — The Herald News, Fall River, MA

Created by Ellen Winsor, a town councilor, the LNG Working Group is collecting resolutions from towns along Narragansett Bay calling for the Federal Energy Regulatory Commission to reject Weaver’s Cove Energy’s application to construct the off-shore berthing station in Mount Hope Bay and the associated land-based facility in Fall River. That effort has led to resolutions from the Rhode Island communities of Tiverton, Bristol, Cranston, Newport, Portsmouth and Warren, as well as Fall River and the Pokanoket Tribe of the Wamponoag Nation in Bristol as signers.

Organizations such as the Rhode Island Statewide Coalition and the Taxpayers Association of Jamestown have also joined the effort.

Coast Guard responds to Cameron LNG proposed export operations — LNG Law Blog

Last week Cameron LNG filed a letter from the U.S. Coast Guard with FERC that outlines the initial reaction of the USCG to Cameron's proposed export operations. The Captain of the Port for Port Arthur, Texas, J.J. Plunkett, stated in his letter that the proposed changes to the Cameron LNG facility do not constitute "new construction" and that the "waterway impacts associated with export operations at the Cameron LNG terminal should not change or exceed those envisioned in the original Environmental Impact Statement, Environmental Assessment, and Waterway Suitability Assessment."

Noranda Bauxite optimistic (Aug 22) — Jamaica Observer, Kingston, Jamaica, West Indies

Energy and Mining Minister James Robertson has championed the need for a cheaper energy source in the form of Liquid Natural Gas (LNG), seeing it as critical to the survival and growth of Jamaica's productive sector including cost sensitive ones such as bauxite and alumina which currently rely on oil fired kilns which are uneconomic based on the volatile price factor of the fuel.

No substance to Valdez option under AGIA [Opinion] (Aug 20) — Alaska Dispatch, Anchorage, AK

Although Gov. Parnell refuses to release the results of Exxon and TransCanada's open season that closed on Aug. 1, we do know that any bids received were heavily conditioned. We also know that the United States no longer needs Alaska's gas. Breakthroughs in tapping shale gas formations have led to gluts in North American natural gas markets. The federal government estimates the Lower 48 now has a 100-plus year supply of natural gas, and that its price will be depressed for at least 35 years. Consequently, TransCanada's CEO says an Alaska project is not a priority.

Ted Stevens and Don Young both recently recognized that Canadian and Lower 48 gas markets are saturated and our future lies in Asia. [Red, yellow & bold emphasis added.]

LNG application decision delayed (Aug 20) — The Daily Astorian, Astoria, OR

Oregon Pipeline, LLC is part of the Oregon LNG project and seeks to run 41 miles of a 121-mile natural gas pipeline through Clatsop County.

County planners recommended denial of the application at a public hearing in June, but the ultimate decision rests in Livingston's hands.

Hearings officer OKs gas pipeline — The Daily Astorian, Astoria, OR [Paid subscription required]

County leaders and planners are already gearing up for the appeal process they are certain will follow.

Hearings officer approves LNG pipeline for Clatsop County — The Daily Astorian, Astoria, OR [Paid subscription required]

The appeal deadline is Sept.3 at 5 p.m. Notices of Appeal must be sent to the Clatsop County Land Use Planning office, 800 Exchange Street, Suite 100 in Astoria.

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20 August 2010

USCG publishes final rule regulating activities near LNG deepwater ports located offshore Mass — LNG Law Blog

Today's Federal Register includes a final rule issued by the U.S. Coast Guard creating security zones, safety zones, and regulated navigation areas surrounding the Northeast Gateway and Neptune LNG deepwater ports located offshore Massachusetts. The rule goes into effect on September 20, 2010.

Proposed Fall River LNG could be halted — WHDN-TV, Boston, MA

FALL RIVER, Mass. -- A proposed LNG terminal in the Taunton River may be dead in the water.

Lawmakers take a tour of city's waterfront — Wicked Local Foxborough, Milford, MA

After learning U.S. Reps. Barney Frank and James McGovern were filing language that they say will kill the proposed Weaver’s Cove LNG terminal, local officials touted the possibilities of developing the waterfront without the threat of tankers carrying liquefied natural gas a short distance away.

“By killing this project we will be able to make an investment in the waterfront,” Mayor Will Flanagan proclaimed after Frank and McGovern announced the amendment they would be adding to the Department of Energy’s appropriation bill. [Bold red emphasis added.]

Bill’s add-on would bar Fall River LNG project — (AP) Boston Herald, Boston, MA

The project, proposed by Weaver’s Cove Energy LLC, has drawn opposition from local residents and officials in Massachusetts and Rhode Island, who say it would pose unacceptable risks to the heavily populated area. Tankers carrying LNG would have to pass through Rhode Island’s Narragansett Bay to get to the site.

[Fall River Mayor William Flanagan] said the plan would lift “a huge albatross” from the city.

“We’re going to take this project off life support, and we’re going to kill it,” Flanagan said. [Bold red emphasis added.]

Frank, McGovern look to kill LNG facility — Providence Business News, Providence, RI

The congressmen will prevent the Federal Energy Regulatory Commission from spending money on this proposed project to build an off-shore berthing site for Mount Hope Bay by adding an amendment in the House appropriations bill for the U.S. Department of Energy.

Without this federal money, Weaver’s Cove will have to kill its plans to advance the LNG facility.

The bill will be voted on before Oct. 1, the start of the federal fiscal year. [Bold red emphasis added.]

Barney Frank and Jim McGovern maneuver to kill Hess LNG terminal (Aug 19) — Wicked Local Foxborough, Milford, MA

The two Democratic congressmen representing the city said they have come up with a plan to deliver the death blow to the proposed Weaver’s Cove liquefied natural gas terminal.

Congressmen Barney Frank and James McGovern Thursday announced they will be including an amendment in the House appropriations bill for the Department of Energy stating that “no funds made available by the act may be used to take any action to authorize the construction of any liquefied natural gas terminal or its infrastructure to be located within five miles of the city of Fall River, Massachusetts, or to authorize vessels carrying liquefied natural gas to serve such terminal.”

“This action will lift a huge albatross from the city of Fall River and eliminate the Hess/Weaver’s Cove proposal that is preventing investors from coming to Fall River’s waterfront,” [Mayor Will Flanagan] said. [Bold red emphasis added.]

Webmaster’s Comments: The Weaver's Cove LNG proposal is even goofier and more inappropriate than the now-dead Quoddy Bay LNG proposal.

Bill: No federal funds for bay LNG terminal (Aug 19) — EastBayRI.com, RI

Congressmen McGovern and Frank, along with Senators John Kerry and Scott Brown, Massachusetts Governor Deval Patrick, Rhode Island Governor Donald Carcieri, Fall River Mayor Michael Flanagan, and virtually all state and local government officials representing the Fall River area, have strongly opposed the LNG proposal since it was first introduced eight years ago.

“If the bill is signed into law, the long fight to stop the LNG terminal will effectively be over,” they said in a joint announcement.

The largest ever natural gas discovery in U.S. history… and the company set to dominate (Aug 19) — iStock Analyst

[I]t's freeing up this huge chunk of cash so it can concentrate on the largest natural gas deposit in the United States…

Laurel Mountain Midstream, LLC, one of Atlas Pipeline's joint ventures, controls over 1,800 miles of natural gas gathering lines in the Marcellus shale formation.

The area, which connects 6,900 gas wells across Pennsylvania and northern West Virginia, produces more than 100 million cubic feet of gas, worth $1 million… each and every day.

And right now, the company is building a new pipeline system that will produce five times that amount when finished. Over 500 million cubic feet of natural gas, each day. That's $1.68 billion annually. Facilities in Africa, the Middle East and Alaska aren't even close to producing that amount in a day. [Red, yellow & bold emphasis added.]

Sabine Pass Liquefaction submits application to export LNG (Aug 19) — LNG Law Blog

Last week Sabine Pass Liquefaction, LLC submitted an application to the U.S. Department of Energy's Office of Fossil Energy to export LNG. The application seeks authorization to export up to 16 mtpa of LNG for 30 years from the Sabine Pass LNG terminal. [Red, yellow & bold emphasis added.]

FERC denies request for rehearing on Freeport LNG trucking proposal (Aug 19) — LNG Law Blog

Yesterday FERC issued an order denying a request for rehearing on Freeport LNG's trucking proposal. The request was filed by a local citizen who expressed concerns regarding potential hazards associated with delivering LNG via truck to the Freeport LNG facility.

European shale gas development unlikely to match the dynamic expansion seen in the US (Aug 18) — Platts

The rapid development of shale gas has had a dramatic impact on the US market and changed the dynamics of international trade in LNG.

Unconventional natural gas has had a dramatic effect on the US gas market and, amongst other things, has undermined the expected rise in imported gas in the form of LNG. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: The US is drowning in domestic natural gas, and is tripping over grossly-overbuilt LNG import infrastructure that is operating on average of only around 10% of capacity, with an additional double the LNG import capacity already permitted but not constructing due to lack of market. Downeast LNG and Calais LNG are projects without a purpose.

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17 August 2010

BEP grants another extension of time for Calais LNG project (Aug 13) — The Quoddy Tides, Eastport, ME

"... Calais LNG stated that if it did not have this backing by August 11 that it would withdraw its applications before the board.... Now, Calais LNG seeks another last-minute extension because its financial backing is not yet secured." He added that Calais LNG does not currently have the financial capacity required by the state's Site Location of Development Law.

Advocates laud halt of gas tank proposal — News Transcript, Freehold NJ

“When we looked at all the different issues, LNG was a dirty, foreign, expensive fossil fuel that was going to take us in the wrong direction for energy policy,” said Zipf.

You have to burn a lot of fossil fuels to get it down to minus-260 degrees [the temperature at which the gas liquifies,] then you stick it in a ship and burn a lot of fossil fuels traveling over the ocean to get it to wherever you want it.

“Then, you have to reheat it once you get there, so you burn even more fossil fuels.

“By the time you get it to the United States, it is almost as dirty as coal, which is the worst of the worst, so it really is not going to help reduce our carbon footprint,” Zipf said, adding that [LNG] is 40 percent more polluting than domestic natural gas. [Red, yellow & bold emphasis added.]

Wu fights for Oregon's rights in LNG siting (Aug 16) — Chinook Observer, Long Beach, WA

David Wu, standing on the shores of the Columbia River at the Cannery Pier Hotel in Astoria, announced that he will introduce a bill to the U.S. House of Representatives that will return the siting of liquefied natural gas facilities to state authorities.

"I just don't think LNG is a panacea for all our woes," Wu said as he outlined the proposed legislation, which is a companion measure to one introduced by Sen. Ron Wyden to the U.S. Senate. [Red emphasis added.]

UNG’s insurmountable obstacle — ETF Database, Chicago IL

Much has been made of the significant supply glut in the U.S., where natural gas inventory levels are well above five-year average levels. But the U.S. natural gas supply is a drop in the bucket compared to the amount of the fuel that some nations simply throw away. It is estimated that Iraq, which is home to some of the largest deposits in the world, burns off $70 billion worth of natural gas each year at its oil fields. If increased regional stability and continued technological advancements allow Iraq to harness that gas and sell it to overseas consumers, the natural gas market in the U.S. would experience a flood of biblical performance. [Red, yellow & bold emphasis added.]

US may see more LNG terminals to export gas — Gulf Times, Doha, Qatar

JPMorgan Chase & Co, the second-biggest US bank, said the US may see more “development plans” for natural gas liquefaction terminals if low prices boost export demand.

Cheniere Energy said in June that it was planning to build an LNG export terminal at Sabine Pass in Louisiana, the first in the lower 48 states. Banks such as JPMorgan and Barclays are boosting their LNG trading in North America as US gas prices fell 24% this year amid increased output from wells in shale formations from Texas to Pennsylvania.

“We are looking for opportunities to do exports that make more economic sense.” [Red, yellow & bold emphasis added.]

Webmaster’s Comments: The market for Calais LNG and Downeast LNG continue to take a nosedive.

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13 August 2010

LNG, FDI, corruption, energy strategy — Jamaica Observer, Kingston, Jamaica, West Indies

The Caribbean LNG bid is unusual. A firm in which the main shareholder is a politically appointed ex-top honcho of the body which has to approve and monitor the deal raises eyebrows in any country. [Red emphasis added.]

Edging toward Kitimat LNG [export terminal] (Week of Aug 15) — Petroleum News

EOG Resources, in partnership with Apache, is engaged in a “methodical,” step-by-step progression toward what would be Canada’s first LNG export scheme.

Mark Papa, chief executive officer of the Houston-based independent, said the joint venture is now probably at step two in what is likely a 10-step project to develop the Kitimat LNG proposal.

Parnell backs exports, with conditions (Week of Aug 15) — Petroleum News

The State of Alaska is asking the federal government to continue allowing exports of liquefied natural gas from the Kenai Peninsula, but only on a conditional basis.

“I fear that without the option of continued exports at Kenai, producers will be confronted with additional disincentives to maintain current production levels, potentially darkening the chances of contracts closing even that narrow gap,” Hawker wrote.

Legislators hear from new in-state natural gas line team (Week of Aug 15) — Petroleum News

Ramras said his concern was that even with LNG, GTL and NGL, “when you aggregate all of Alaskans together, with or without a subsidy, there simply aren’t enough of us to take the capacity for half a b (half a billion cubic feet a day) in a pipeline. There aren’t enough of us; there’s not enough industry in Alaska at this point.”

What if you find a project that could create industrial demand, Ramras asked Fauske, but it costs as much as the in-state gas pipeline: “We’ve got to be careful that you’re not basing the construction of the in-state gas line on anticipation of a one-off project that may have just as much underlying capital cost.”

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12 August 2010

Corporate intimidation? (Aug 11) — The Herald News, Fall River, MA

R.I. officials say Weaver's Cove is obstructing opposing views

Committee Chairman Dan Wright said the group has met just about weekly since its inception, with those meeting routinely, including a person representing Weaver’s Cove in attendance and videotaping the proceedings.

Based on those recordings, according to letter from attorney Gregory L. Benik, of the Warwick, R.I., law firm Benik and Associates, Weaver’s Cove is alleging Wright “made false statements in a public meeting about the formal communications between the LNG Threat Committee and other entities and individuals.”

The letter states that Wright claims he has disclosed all documents the committee has received, but the videotape shows that Wright possessed documents that were referred to, and shared those with other members of the committee without acknowledging or disclosing those documents to the public.

Wright, however, feels the letter from Benik lacks substance, questioning why it wasn’t accompanied by any videotapes or references to a particular meeting, quote, or document that would refer to the company’s allegations.

“This is corporate intimidation,” Ruggiero said in a statement. “Instead of Hess/LNG collaborating with local communities, they are using corporate intimidation against our towns and citizens. Communities up and down Narragansett Bay are organizing because of the potential environmental and economic damage to our bay and local economies. We must be vigilant against this arrogance.” [Red emphasis added.]

Webmaster’s Comments: If Weaver's Cove/Hess Energy had a legitimate complaint, they would cite the specific instances they claim are illegal acts, and would submit the evidence on the video tapes to the appropriate legal authorities and the news media. It does appear to be an attempt by the Weaver's Cove to stifle opposition.

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11 August 2010

NRCM announces its fifth annual People's Choice Award nominees — Natural Resource Council of Maine

NOMINEE: Vera Francis — Nulankeyutomomen Nkihtahkomikumon organizer

Webmaster’s Comments: Visit the NRCM page to read more. If you are an NRCM member, please cast your vote for Vera! [Signing in as a member is required to vote.]

Barclays expanding natural gas trading service after agreement with Eni (Aug 10) — Bloomberg

Eni has “significant capacity and storage rights” at the Cameron terminal in Hackberry, Louisiana, according to a release from the bank. Under the multiyear agreement, Barclays will market natural gas supplied from imports for downstream delivery.

The Cameron terminal can convert LNG to natural gas and send out 1.5 billion cubic feet a day of natural gas to regional pipelines, according to Sempra Energy, owner of the terminal. Eni signed a 20-year contract with Sempra in 2005 to contract 40 percent of the capacity. The site can store 480,000 cubic meters of LNG.

Barclays will also have the right to supply LNG to Eni at Cameron, the release said.

Barclays initiated its LNG services with a deal in December, to market Excelerate Energy LLC’s liquefied-natural- gas cargoes landing at the Northeast Gateway Deepwater Port, 13 miles off the Massachusetts shore.

U.S. LNG imports will average 1.37 billion cubic feet a day this year, up 10 percent from a year ago, the Energy Department said in its monthly Short-Term Energy Outlook report on July 7.

Webmaster’s Comments: US LNG import volumes currently equal the approximate capacity of just one LNG terminal. The US has 10 operating LNG import terminals. Plus, there are 13 additional LNG import terminals already permitted but not constructing due to lack of demand.

If US LNG imports increase by the predicted 10%, then LNG import terminals will still be operating on average of only around 10–11% of capacity — around 89–90% of capacity will remain idle. Proposals by Calais LNG and Downeast LNG have no market justification — as Goldman Sachs has demonstrated by deserting Calais LNG.

FERC requests information in advance of annual review of Kenai LNG facility — LNG Law Blog

Yesterday, FERC requested information regarding the Kenai LNG export facility in advance of the Commission’s annual inspection of the terminal. FERC's inspection is scheduled for September 21-22, 2010.

Short-term energy outlook (Aug 10) — EIA (US DOE Energy Information Agency), Washington, DC

EIA forecasts gross pipeline imports of 9.05 Bcf/d in 2010, an increase of about 0.1 percent from 2009. EIA expects gross pipeline imports of 8.95 Bcf/d in 2011. Forecasted imports of liquefied natural gas (LNG) average 1.35 Bcf/d in 2010 and 1.42 in 2011. Higher LNG prices in European and Asian markets could divert the growing world supply of LNG away from the United States.

Webmaster’s Comments: Predicted increases in LNG imports are insignificant related to LNG import capacity and domestic natural gas reserves. The US is drowning in domestic natural gas. LNG import terminals are operating at one-tenth capacity. Thirteen US LNG import terminals already permitted are not constructing due to lack of market. One US LNG import terminal (Sabine Pass) has applied to liquefy domestic natural gas and export LNG.

Natural gas and international relations (Part I) — The Globalist, Washington, DC

Until a year and a half ago, the gas market used to be very predictable, almost boring. On the demand side, annual growth used to be around 3% — give or take a percentage point.

Fast forward 18 months and the situation looks very different.

[T]he shale gas revolution in the United States has extinguished the need to import gas into North America, freeing up a lot of supply for the rest of the world. Liquefied natural gas (LNG) cargoes which used to make straight for the United States have now changed route and are sailing into Europe and Asia.

Webmaster’s Comments: It is clear to the world that Downeast LNG and Calais LNG have no future.

Cargo vessel strikes a southern right whale in Argentina (Aug) — Ballenas de Las Bahías, Argentina

On August 3 at 15:00 pm. a cargo vessel collided with a southern right whales when is was arriving to a pier (Storni) of the city of Puerto Madryn. The incident occurred at a time when the ship Langeness 160 meters lenghts [sic], at very low speed entering collided with bulb bow to an individual of right whale about 200 meters from the pier.

This incident is the first reported with a vessell moving near the pier with a collision with a bulbous bow at very low speed ([less] than 2 knots).

Webmaster’s Comments: The above page also contains video and still images of the ship colliding with the whale.

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9 August 2010

R.I. Senate submits Task Force's findings on Weaver's Cove LNG to FERC (Aug 6) — LNG Law Blog

The [Rhode Island Senate] task force recommends that FERC deny Weaver's Cove LNG's application to construct an offshore LNG unloading berth.

Separately, the City of Fall River, Mass., objected to Weaver's Cove LNG submission to FERC’s technical staff regarding the project’s proposed "Single Accidental Leakage Source Determination."

Webmaster’s Comments: The Weaver's Cove LNG project in Mount Hope Bay and at Fall River is a Rube Goldberg configuration of ill-conceived ideas. The proposal fails to meet LNG industry terminal siting best practices, and would likely create a 4.25-mile long exclusion zone through the middle of the waterway. "Conflicting use" of the waterway does not begin to describe the Weaver's Cove Energy proposal.

Ahearn: Good news on the energy front (Aug 8) — NorthJersey.com, NJ

The big question with both projects was whether they would make economic sense. The answer was, and still is, uncertain, because of a glut that has developed in gas supplies.

In April New Jersey's new governor, Chris Christie, said he would oppose all offshore LNG projects. The decision will be up to the federal Maritime Administration and the Coast Guard to make, because the island would be built in federal waters.

Oregon Appeals Board deals major blow to PG&E’s LNG project [News release] (Jul 16) — Pacific Environment, San Francisco, CA

North Bend, OR – Opponents of PG&E’s Pacific Connector Gas Pipeline and the related Jordan Cove liquefied natural gas (LNG) facility welcomed news that Oregon's Land Use Board of Appeals (LUBA) rejected CoosCounty's approval of the project yesterday [July 15].

Why our environmental laws are failing (Aug 6) — The Salt Lake Tribune, Salt Lake City, UT

In a perfect world, where regulatory agencies are serious and neutral and where regulators are never influenced by politics, turning life-and-death decisions over to a class of technocrats might have made sense. But in the real world, regulatory agencies are more often than not under substantial pressure from elected officials to acquiesce to demands from regulated industries. These agencies are also often staffed by bureaucrats who anticipate plum jobs in the industries they regulate once their government pensions have vested.

[S]tate and federal judges ought to once again assume their review authority over administrative agencies. Even in light of the Chevron decision, our federal Constitution and all state constitutions give the judicial branch the authority to review the actions of the other branches of government to make sure they’re in line with the governing laws and constitutional provisions. Reviewing courts should carefully scrutinize agency decisions and act aggressively in revisiting agency decisions that put communities at risk. If expertise is the issue, then judges who have technical backgrounds should be recruited and appointed to the bench. Alternatively, judges could specialize in particular areas of administrative law and develop a deep understanding of the technical issues in that area, just as practicing lawyers do.

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5 August 2010

Swansea selectmen unswayed by LNG pitch (Aug 3) — The Herald News, Fall River, MA

Weaver's Cove also said boats would not arrive unannounced, but would give 96 hours notice. The video said deliveries would not deter boating or sailing regattas.

[Selectmen Chairman Robert A. Marquis] said there is no regional need for an LNG terminal, and that three other terminals opened since Hess LNG proposed the project would benefit the New England region.

Webmaster’s Comments: Weaver's Cove officials cannot make any claim regarding inconvenience to boating since they, themselves, do not know the measures FERC and the US Department of Transportation would require. Currently, all LNG cryogenic piping must be contained within the confines of the terminal; it is not allowed outside the terminal.

If FERC and the DOT were to allow the proposed 4.25-mile long LNG cryogenic piping to run from the receiving facility in the middle of Mount Hope Bay and up the Taunton River to the land-based LNG facility, would they require an Exclusion Zone above the underwater piping, like they do at all LNG terminals? If so, there would be a 4.25-mile long "fence" in the water, across which no boater could transit. That would mean a potential extra 8-mile transit out and around the receiving platform for some boat trips, rather than a direct straight-line transit.

For Weaver's Cove officials to claim there would be no inconvenience to boaters is disingenuous. They, themselves, do not even know if what they are promising would be true.

Jamestown looks offisland for ACO services — The Jamestown Press, Jamestown, RI

Dick Lynn, vice chairman of the Jamestown LNG Threat Committee, said that four councils out of the 25 invited have so far said that they will attend [the “Congress of Councils” on Sept. 8].

Emergency shutdown reported at Elba Island LNG terminal — LNG Law Blog

BusinessWeek reports that the Elba Island LNG terminal informed the National Response Center yesterday of an emergency shutdown of the facility due to a control system failure.

FERC initiates NEPA Pre-Filing process for Sabine Pass LNG liquefaction project — LNG Law Blog

Yesterday FERC agreed to initiate the agency's National Environmental Policy Act (NEPA) pre-filing review of Sabine Pass LNG's application to install liquefaction facilities at its existing regasification terminal.

Webmaster’s Comments: There is so much available domestic natural gas, the need for importing LNG into the US is so low, and US LNG import infrastructure has already been so overbuilt, Sabine Pass LNG — that has already been reexporting LNG it imports — is now building an LNG liquefaction terminal to export US natural gas in addition to reexporting imported LNG.

Oregon Pipeline reports results of open season — LNG Law Blog

Oregon Pipeline Company, LLC reported to FERC yesterday that it has concluded a non-binding open season for capacity on its proposed natural gas pipeline. Oregon Pipeline stated that its affiliate, Oregon LNG, was the only company to bid and was awarded all of the capacity on the Oregon Pipeline.

As pipeline moves forward, concerns remain — KCBY-TV, North Bend, OR

COQUILLE, Ore. -The Pacific Connector Gas Pipeline, which would connect with the Jordan Cove LNG Terminal, takes another step closer this week.

Coos County Commissioners have agreed to adopt the Hearing Officer's recommendation for a land use permit but not without a long list of additional conditions.

Spokesperson for Citizens Against LNG, Jody McCaffree says that while she believes the Commissioners raised some good concerns, there were just too many other things overlooked. She says they're planning an appeal to the State Land Use Board of Appeals.

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3 August 2010

Advocates laud suspension of LNG proposal — The Hub, Freehold NJ

Ocean advocates are welcoming a decision by Atlantic Sea Island Group to withdraw its proposal to construct Safe Harbor Energy, a 116-acre liquefied natural gas (LNG) facility on a man-made island 19.5 miles off the coast of Sea Bright.

“You have to burn a lot of fossil fuels to get it down to minus-260 degrees [the temperature at which the gas liquifies,] then you stick it in a ship and burn a lot of fossil fuels traveling over the ocean to get it to wherever you want it.

“Then, you have to reheat it once you get there, so you burn even more fossil fuels.

“By the time you get it to the United States, it is almost as dirty as coal, which is the worst of the worst, so it really is not going to help reduce our carbon footprint,” Zipf said, adding that it is 40 percent more polluting than domestic natural gas.

Webmaster’s Comments: LNG runs counter to cleaner, less expensive, domestic, more secure energy supplies.

Robertson underscores importance of Independent OUR (Aug 1) — Jamaica Observer, Kingston, Jamaica, West Indies

The project, which is due to be completed by 2012, will see the construction of a ship for the storage and regasification of LNG, a jetty and onshore buried LNG distribution lines.

Webmaster’s Comments: Jamaica has no domestic natural gas resource.

The gift of shale gas [Opinion column] (Aug 2) — Orlando Sentinel, Orlando, FL

Until recently, scarce U.S. natural gas reserves suggested increasing dependence on expensive foreign supplies of liquefied natural gas (LNG). No more. Next, natural gas emits about 50 percent less carbon dioxide -- the major greenhouse gas -- than coal. Substituting gas for coal in electricity plants could temper emissions. Finally, shale gas in Europe and Asia has huge geopolitical implications. It could reduce dependence on Russian natural gas and frustrate any gas cartel mimicking OPEC.

How much shale gas exists is unknown, but estimates are huge. The Potential Gas Committee is a group of geologists who regularly estimate future U.S. gas supplies. In 2000, the group's estimate equaled about 54 years of present annual consumption; by 2008, it was almost 90 years. "This isn't the end," says Colorado School of Mines geologist John Curtis. Globally, one study estimated the recoverable supply at 16,200 trillion cubic feet, more than 150 times today's annual world gas use. [Red, yellow & bold emphasis added.]

Webmaster’s Comments: The US is swimming in natural gas reserves.

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1 Aug 2010

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